Club store titan Costco has introduced plans to enter a new more-than-one-billion consumer market. The retailer will reportedly open its first stores in China over the next two years—along with a new China headquarters.
The U.S.-based retailer has, according to local news sources, signed an agreement with state-owned Shanghai Pudong Kangqiao Group to set up its new Chinese headquarters in Kangqiao, in Shanghai’s Pudong district.
According to Inside Retail Asia, Costco also plans to open its first physical store in Shanghai’s Minhang district next year. And a second store is reportedly planned to open in Pudong in 2021.
Since 2014, Costco branded products have been available in China through Alibaba’s Tmall e-commerce platform. And though international retailers like Tesco and Lotte have scaled back their investments in the region because of “market barriers and disappointing sales,” Inside Retail Asia reports that Costco is apparently diving into the market without trepidation.
Will this international gambit pay off for the expansive retailer? Deli Market News will continue to report on this and other important sellers of fresh food.